Online video ad spend is estimated to grow at a rate of 25% year on year (YoY) to $9.6 billion in 2016. Brands have seen remarkable success in narrating their brand stories and captivating online audiences using video, with high engagement, increased dwell times and high completion rates. But what does this mean for performance advertisers? Does video deliver beyond awareness-generation? Can video steer consideration, and thereby influence conversions and the acquisition of high lifetime value (LTV) customers?
Video is eating the world
55% of all content consumed on mobile in 2015 was video and this is expected to grow to 75% by 2020. Video is emerging as the preferred medium for advertisers because of genuine demand from users. Unlike traditional online ad formats, the immersive nature of video not only strengthens user intent by generating excitement but also drives users to transact or download.
Mobile video’s telling effect on key downstream metrics such as click-through rates (CTR), conversion rates (CVR) and quality of users acquired is unparalleled. A recent comScore study revealed a 90% uplift in performance campaigns that used video ads. Industry segments such as retail, gaming and housing are early benefactors of the video wave. While shoppers are 64% more likely to buy a product after watching a video, real estate companies with video ad listings have received 403% more inquiries than those without!
InMobi video insights
The performance of videos on the InMobi network tells a similar story. InMobi’s analysis of over 1 billion1 ads globally corroborates the effectiveness of video for performance marketers, delivering 5 times the average CTR and 100% more conversions than that of traditional ad formats such as banners. But, the success of video on mobile has more to it than mere user demand!
Source: InMobi Network Insights - Indexed numbers with banner performance as baseline
As a non-intrusive and highly palatable format, video captures the attention of users. Be it introducing the latest hardcore gaming app to its audience or driving transactions for an online sale, video draws users into an immersive experience, unlike the static ad formats. In addition, video ads on mobile have the advantage of context and communicate personalized value propositions to gently nudge customers. For example, an online food ordering platform can draw customers by showcasing video storyboards with the cuisine on offer during lunch or dinner hours. Or, a video of the latest fall collection for women in an apparel store can generate excitement among fashion aficionados and improve sales. Finally, custom end cards in videos capture the strong user intent in mobile users thereby delivering audiences of remarkable quality to advertisers.
The power of mobile video
Performance marketers are 5 times2 more likely to acquire a high-quality user with video than with traditional banner ads. Mobile video - with its various formats - is a valuable investment for advertisers to glean high-quality audiences from a myriad of users out there. For example, the rewarded video format, widely used in the gaming industry, is synonymous with high-quality gamers. A player is a third more likely to stick around when downloading a game after seeing a video ad than if they downloaded the game after seeing a non-video format ad. Rewarded video ads provide in-app rewards for completed views rather than clicks in a gaming app, leading to not only informed clicks but also downloads with true user intent.
Also, auto-play video - the preferred video ad format for performance advertisers - has delivered 300% better conversion than traditional banner ads. Mobile users today prefer to experience serendipitous discovery with such videos. The ability to target audiences with high video view percentages guarantees high value for performance advertisers and is what makes the mobile video much more powerful than traditional channels.
At a time when consumers interact with a variety of devices, it is important for performance advertisers to get a consistent message across channels. With video, existing assets from traditional channels can be leveraged on the mobile platform to capitalize on the consumer moments that drive ease of download and transaction - key actions that matter the most to performance advertisers. Advertisers such as Supercell have made the most out of app install campaigns by supplementing a consistent cross-channel messaging across television and outdoor (super bowl) with mobile video.
Video on mobile, as a distinctly active visual medium, aids the consumer journey from awareness to consideration to action within a span of 15-30 seconds. Reaching beyond the surface, video renders the performance marketers’ value proposition in a clear and understandable manner. With a strong user pull and noticeable results, the mobile video clearly is as mainstream for performance advertisers as it is for brands.
1 Only rendered | 2 InMobi Network Insights